Negotiation is a process of

communication in which the parties

aim to "send a message" to the other
side and influence each other.
 Something that we do all the time , not only
for business purposes.
 usually considered as a compromise to settle
an argument or issue to benefit ourselves as
much as possible.
 Not always between only two people: it can
involve several members from two parties.
 Distributive negotiations

 Integrative negotiations
 Referred to as 'The Fixed Pie'
usually involves people who have never had a
previous interactive relationship, nor are
they likely to do so again in the near future.

eg: Purchasing products or services, like when

we buy a car or a house
 Ours and their interests are usually self
serving
 The process generally involves some form or
combination of making value for value
concessions, in conjunction with creative
problem solving.
 Form a long term relationship to create
mutual gain.
 often described as the win-win scenario
 Initial Stages

 Middle Stages

 Ending Stages
 Plan thoroughly.

 Organize the issues.

 Focus on mutual principles and concerns.

 Beaware that the first offer is often above

expectations.

 Focus on long- term goals and consequences.

 Revise strategies.
 Consider other options.
 Increase power by getting the other side to
commit first.
 Add credibility by getting agreements in
writing.
 To get through with dead ends, just set it
aside momentarily.
 When asked for a concession, ask for a
tradeoff.
 Countera persistent negotiator by
withdrawing an offer.

 Do not expect in verbal promises.

 Congratulate the other side.

 Sometimes people fail to negotiate because
they do not recognize that they are in a
bargaining position.
 Or, they may recognize the need for
bargaining but may bargain poorly because
they do not fully understand the process and
lack good negotiating skills.
 partiesmust be aware of their alternatives
to a negotiated settlement
:Weaker parties must feel assured that they
will not be overpowered in a negotiation
:parties must trust that their needs and
interests will be fairly considered in the
negotiation process.
 Negotiation seems to bring conflicts . Any
misunderstanding that arises between them
will reinforce their prejudices and arouse
their emotions.
 Tocombat perceptual bias and hostility,
negotiators should attempt to gain a better
understanding of the other party's
perspective and try to see the situation as
the other side sees it.
 ifthe "right" people are not involved in
negotiations, the process is not likely to
succeed.
 Agreements can be successfully implemented
only if the relevant parties and interests
have been represented in the negotiations.
 So, all of the interested and affected parties
must be represented. And, negotiators must
truly represent and have the trust of those
they are representing.
To brush up your ‘win-win’ negotiation skills…
Fora negotiation to be win-win“,
both parties should feel positive
about the negotiation once it’s over.
 What you want to get out of the negotiation
 What you think the other person wants
 What you and the other person have that can
be traded for the purpose of negotiation.
 What do you each have that the other wants?
 What are you each comfortable giving away?
 Ifyou don’t reach agreement with the other person,
what alternatives do you have?
 Are these good or bad?
 How much does it matter if you don’t reach
agreement?
 Does failure to reach agreement cut you out of
future opportunities?
 What alternatives the other person might have?
 What is the history of the relationship?
 Could or should this history impact the
negotiation?
 Will there be any hidden issues that may
influence the negotiation?
 How will you handle these?
 What outcome will people be expecting from
the negotiation?
 What has the outcome been in the past, and
what precedents have been set?
 What are the consequences for you of
winning or losing this negotiation?
 What are the consequences for the other
person?
 Who has what power in the relationship?
 Who controls resources?
 Who stands to lose the most if agreement
isn’t reached?
 What power does the other person have to
deliver what you hope for?
Based on all the consideration….

 What possible compromises might there be?